Apple has cut prices for iPhones, iPads, Macs and AirPods in its official China online store. Greater China represents about 15 percent of Apple’s global revenue.

Why It’s Important

Apple blamed the ongoing trade war and weakening iPhone demand in China for its revenue miss in the most recent quarter. Apple’s Greater China revenue was down about $5 billion in the fourth quarter, or more than 25 percent compared to a year ago.

The pricing cuts are disappointing to investors already concerned about falling demand in China. Last week, Bank of America analyst Wamsi Mohan said supply chain checks in China suggest iPhone orders have stabilized.

“We are comfortable with our thesis that consensus is too pessimistic on iPhone units/revs,” Mohan wrote in a note last week.

Bank of America estimates iPhone channel inventory declined by 4.5 million units in February after falling by 4 million units in January.

Apple bulls may take comfort in the fact that the latest round of price cuts in China could simply be a response to the value-added tax cuts that took place in China on Monday. Apple and other manufacturers had their value-added tax cut from 16 percent to 13 percent, and Apple has a history of passing tax savings on to customers.

Price Action

After opening in positive territory, Apple traded lower by 0.6 percent to $188.67 per share following news of the pricing cuts.